Reply To: ECB Raises Rates Another 50 bps as Expected, Forecasts Higher Inflation


Lagarde opening statement:

We have made substantial progress in withdrawing accommodation
Inflation remains far too high
Consumer and business confidence has fallen rapidly
Expect further economic weakening in remainder of this year and next year
Expect economy to slow down substantially over remainder of the year
Cites weaker global demand and also due to tighter monetary policy
The post-pandemic rebound in services demand is slowing
Labour market performed well but somewhat higher unemployment possible as economy slows
Inflation-shielding should be targeted at the most vulnerable
Risks to economic outlook clearly on the downside, cites war, supply disruptions and weakening world economy
Risks to the inflation outlook are primarily on the outside, led by retail energy prices
A weakening of demand would lower prices pressures
Bank lending to firms remains robust
We expect to raise interest rates further
With this third major hike in a row, we have made substantial progress in withdrawing accommodation
Future decisions will continue to be data dependent and we stand ready to adjust all instruments